3. An economist used the least squares procedure to fit a regression model of the formy₁ = B₁ + B₁x₁, +B₂x2, +,, where y is quantity demanded of a good (in million units),x, is price of the good (in cedis), x₂ is household income (in thousand cedis), andE, ~ N (0,0¹). Tabulated below are sums obtained 8 sets of observationsΣ.y=4832y =30567Ex₁y=3068Σχ =53Σχ = 365Σx₂y=3795Calculations have produced the following matrix(x'x)' =50.68462 -4.030770.33846Ex=60Σ.x = 472Σxx, = 382-3.18077]0.238460.21346a. Form the matrices: XX and X'Y.b. Use (X'X) and X'Y to compute the OLS estimates for B₁, i = 0,1,2.c. Write the fitted regression model and interpret the partial regression coefficients.

The regression model is,where y is the dependent variable representing the quantity demanded of…

Answered: 3. An economist used the least squares…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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